According to Foresight News, the National Bank of Cambodia has approved for the first time commercial banks and payment institutions to provide services related to Category 1 crypto assets, including stablecoins and secured cryptocurrencies.
The directive was issued on December 26 and announced on the 27th, aiming to regulate the operation of digital currencies to cater to global financial trends. Institutions need to obtain approval from the NBC before they can conduct crypto asset and fiat currency exchanges, transfers between accounts and custody services.
Institutions are not allowed to use clients’ crypto assets for their own purposes. Unbacked cryptocurrencies such as Bitcoin remain prohibited.